The difference between tax accountants and CPAs

Tax professionals are perfect for steering the taxpayers in the right direction and help them evade through the complex federal and state codes. Also, it is their duty to make sure that their clients obtain deductions that they deserve. It is not uncommon for business owners to get perplexed by the roles of CPAs and tax accountants in Sydney. Though it is true that some of their tasks overlap, the level of control and power they have differs a lot. This article features the differences between a CPA and an accountant in Sydney,

Responsibility

Usually, companies hire the services of accountants in Sydney from accounting firms that are managed by certified public accountants. Accountants are closely associated with the day-to-day financial entries of your business. They supervise or perform billing, general ledger entries and payrolls. They hold a middle-level position in the department and are answerable to the finance director, accounting manager or some other authoritative figure who might be a CPA.

A CPA does auditing service and oversees the financial records of an individual or a business.

License

In Sydney, accountants are required to have an educational background in the accounting. Though, many might have a degree on accounting, certain accountants are general business majors.

A CPA candidate on the other hand must have completed 150 hours of college course work which includes some classes on the higher levels of accounting, auditing, and business. Also, they need to undergo a variety of tests and fulfil strict requirements to get licensing in the state in which they practice. Even after getting licensed, they have to educate themselves continuously to keep up with all the latest information and changes on accounting.

Fiduciary responsibility

CPA’s are regarded as the one of the most trusted advisors for business men. It has been found that half of the small business owners often get the services of a CPA when they seek outside business counsel, next to their family members. For most businesses, Only a CPA can audit their financial records and issues the reports effectively. Also, they are considered as fiduciaries and are entitled to act on the behalf of their clients legally. Accountants do not have that kind of responsibility.

Taxes

Non-CPA tax accountants in Sydney are capable of preparing the tax returns for their clients. But a CPA is much more knowledgeable in tax codes and can even represent their clients before the IRS if needed.

Ethics

Other than the licensing, a CPA is supposed to act ethically and meet high standards in their profession.

Now that you have understood their difference, you can cleanly say that all CPAs are accountants, but not all accountants are CPAs.